Gold losses trigger circuit breakers in Tokyo

ClementineWallop

Gold trading for the Tokyo Commodity Exchange's February 2014 contract has been interrupted three times since 1700 local time Monday as heavy losses triggered circuit breakers, a Tocom spokesman said Tuesday.

The interruptions come as Tocom gold plunges alongside international prices for the precious metal, and also due to strong gains in the Japanese yen over the last few sessions.

In Monday's trading, international gold prices dropped to their lowest level in two years as investors liquidated long positions in frenzied panic selling.

Tocom six-month gold is trading at 4,169 yen a gram, down 10.1% from its previous settlement and off 14.0% since the beginning of the month.

Dollar-priced gold is trading at $1,330.80 a troy ounce, down 1.7% from Monday's settlement and more than 15% lower since the start of April.

Tocom's gold circuit breakers are triggered when prices move 150 yen a gram, the spokesman said. Three interruptions over such a short period are very rare, he added.

Gold's pullback on Tocom follows a rally since the start of the year that has resulted from depreciation of the yen as sweeping economic reforms take hold in the country.

Gold prices traded close to records earlier this month as yen weakness spurred buying interest, but prices have now erased 2013 gains.

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